Monday, 4 January 2010
Happy New Year! We hope you had a luxurious break and enjoyed some bubbly on New Year’s Eve.
Speaking of champagne, we saw an interesting headline in the Telegraph: Recession Over? Champagne Sales Sparkle. It seems that in Britain, champagne sales have overflowed in the celebratory season. However, this sales jump was linked to “relentless price cutting and promotions engineered by supermarket chains”.
Business Week continued this topic with their article, French Welcome 2010 With Deep Champagne Discounts, which suggests the heavy discounting is damaging the champagne industry. French securities analyst Francis Pretre said, "We haven't seen such aggressive discounting since the big champagne crisis in 2000 [when prices fell after the millennium celebrations]. If it continues, it will create a real image problem for the champagne brand."
There’s no denying the champagne industry fizzled a bit in 2009 (see our MO Down article: A French Champagne Row Is Causing Sour) so let’s hope 2010 sees more cause for celebration.
Who's behind the MO DOWN
Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au